The 67-year-old 'Terminator' actor, who served two terms as the 38th Governor of California from 2003 until 2011, made a rare appearance in Sacramento nearly four years after he left office, reported the New York Post.
The oversized portrait of a youthful Schwarzenegger, which will eventually hang on the third floor, was painted by Austrian artist Gottfried Helnwein, a realist who previously illustrated Andy Warhol and John F Kennedy.
The actor said he never envisioned his portrait hanging in the state Capitol, joking, "I might have envisioned a sculpture on Muscle Beach."
Lieutenant Governor Gavin Newsom said the massive image of Schwarzenegger is appropriate because he is "larger than life".